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Abstract

This page presents an abbreviated version of the master's work, which sufficiently reveals the key points of the study. The full text of the master's work will be available in May 2019. You can receive the full version after this date by email.

Content:

Introduction

External economic activity is an effective way of enterprise development. The export of products contributes to the increase in the company's sales volumes due to the development of new markets, increases profits and foreign exchange resources and provides the company with the opportunity to be recognized not only within national borders, but also internationally.

1. Theme urgency

International marketing is important for businesses wanting to grow in the global market where businesses compete for consumers’ last dollar. International marketing looks at what it currently does e.g. who they market to, how they do this. However in the global sense, it looks at what it has to change to get the new market and what can it keep the same as back home. What other competition exists in the new market, what laws exists that may affect the businesses operations, how can the product adopt the different culture.

2. Goal and tasks of the research

The goal of this master's thesis is to analyze the production and financial activities of the company OJSC "Rot Front" and to offer opportunities to improve the efficiency of its foreign economic activity. To achieve this goal, the following tasks were given:

  1. to study the general characteristics of the company OJSC “Rot Front”;
  2. to analyze the effectiveness of the economic activity of the enterprise;
  3. identify key areas for market development and formulate a marketing strategy for entering the Roth Front company into the confectionery market in China.

Research object: OJSC “Rot Front”

Research subject:

Achived results of the research

When planning foreign economic activity, it is necessary to assess the company's ability to produce and accumulate manufactured products. The company must be prepared for a potential increase in volumes and be able to fulfill orders. It would be optimal to load used and free production facilities, to find opportunities to increase productivity without additional significant costs.

Analysis of the degree of depreciation of fixed assets showed that the coefficients of depreciation exceed 50%. It is considered that the critically acceptable value of the wear coefficient should not exceed 50%. As physical depreciation increases, unplanned downtime associated with equipment malfunction increases, the duration of the repair cycle changes, and maintenance and repair costs also increase. Technical and economic characteristics of equipment operation (equipment productivity, growth rates of production volumes) are also deteriorating, product quality is deteriorating, production defects increase. It would be most expedient to sell the existing equipment at the residual value and by adding accumulated depreciation deductions to acquire new production and vehicles, which will provide the company with a stable and high-quality output.

The liquidity of the balance sheet reflects the possibility and degree of coverage of the company's obligations with its assets. Liquidity ratios are of interest both for company management and for external subjects of analysis, such as credit organizations (to assess the possibility of issuing loans), investors (to determine the difficulty of withdrawing funds invested in a business), suppliers and contractors (before concluding major purchasing transactions material resources or the provision of services).

The current liquidity ratio showed that the company is able to repay current (short-term) liabilities at the expense of current assets only. However, a high current liquidity ratio is also not desirable, since it may reflect the insufficiently effective use of current assets or short-term financing. In any case, investors and lenders prefer to see a higher coefficient value as a sign of the company's stable position.

The calculation of the intensity of use of production equipment showed that the company does not load the production lines completely. Full load of production capacity will allow the company to produce more products and direct it to the confectionery market in China, provided that the degree of wear of production equipment will allow the company to produce additional commercial products for the foreign market in a stable and high-quality manner. The cost capacity of the confectionery market in China is $ 40 million in 2017, and the market capacity in terms of volume is 5,586 thousand tons, and OJSC Rot Front is capable of annually producing an additional 14,660 tons of products. The use of production facilities and the formation of an effective marketing strategy will allow the company to master the confectionery market in China and take 2.62% of the total share of the foreign market. Russian confectionery manufacturers, including OJSC ROT Front, have significant potential to win a small market share of confectionery products in China. The stock of unused production capacity of the OJSC Rot Front can be used to make trial deliveries to the Chinese market. One of the most significant problems when entering the external market is the need to expand commercial operations in the market to many provinces, since at present most of the sales are in Chinese cities bordering Russia. Therefore, a broad section of Chinese buyers still cannot appreciate the Russian chocolate brands. Consumer awareness and promotion of their demand should be carried out through marketing communications developed through a thorough approach to the analysis of the market and its capabilities.

When forming a marketing strategy, an enterprise should pay attention to the following factors:

  1. high competition rate of large international companies in the confectionery market in China
  2. a quite good solution can be the help of an intermediary company with which you can: analyze the market and provide the most profitable options for concluding transactions, get advice throughout the transaction, find regular customers and build partnerships with them, solve the problems of trade in products raw materials, correctly and quickly arrange any customs and other documents, transport the goods to the final consumer.
  3. the biggest problem of the promotion of Russian chocolate on the Chinese market is that all Russian chocolate is sold in the border cities bordering Russia. All sellers are private individuals, and the Chinese buyer does not develop knowledge of the Russian chocolate brand. The main competition takes place in the cheap segment.
  4. legal issues also pose a problem for Russian manufacturers. For example, if European manufacturers immediately register trademarks as an object of intellectual property, then Russian ones do not do this in order to reduce costs. As a result, a package of a previously unknown manufacturer, similar to a Russian company, may appear in China. In the absence of protection of rights to ownership of the trademark, the Russian company has no legal grounds to stop unfair competition. As a result, the Russian company will incur substantial material and time costs for rebranding, registering a new brand and rebuilding business relations with intermediaries, since the existence of this brand on the market not only worsens consumer attitudes towards products, but is also economically inefficient and unjustified.
  5. Implementation of minimized Moore FSM on two–level circuit with positional-binary states encoding. Use of ROM with synchronous reading and back front of the main signal of synchronization (experiment 5).

Conclusion

An analysis of the financial activity of the enterprise and an assessment of its production capacity revealed that OJSC Rot Front is capable of annually additional production of 14,660 tons of products. The use of production facilities and the formation of an effective marketing strategy will allow the company to master the confectionery market in China and take 2.62% of the total share of the foreign market. Russian confectionery manufacturers, including OJSC ROT Front, have significant potential to win a small market share of confectionery products in China. Analysis of the company's foreign economic activity showed that the company carries out all foreign deliveries of its products spontaneously and does not have a clear market position in a foreign market. When forming the marketing strategy for the company Roth Front to enter the Chinese market, it is necessary to take into account the specifics of the market, study the competition, define its segment, form effective sales channels and incur significant costs to promote products in the confectionery market in order to increase brand awareness.

Further studies focused on the following aspects:

  1. Qualitative improvement of the proposed approach to the unification of the synthesis of Moore automata, its complement and expand.
  2. Delimitation of the effectiveness of different variants of the basic stages of a unified process for the synthesis of Moore automata.
  3. Adaptation of known methods of constructing the logic of Moore automata to the base FPGA.
  4. Develop cross-platform functionality and computer-aided design of Moore automata (CAD) software that implements the proposed unified process synthesis.

This master's work is not completed yet. Final completion: May 2019. The full text of the work and materials on the topic can be obtained from the author or his head after this date.

References

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